Bloomberg: PetroChina, Sinopec 2015 Shale Output Said Below China Goal

China is on track to miss its shale gas production target for this year as its biggest producers throttle back output amid weakening demand growth and a collapse in energy prices.

PetroChina Co., the country’s largest oil and gas company, may produce about 1.6 billion cubic meters of the unconventional gas this year, lagging behind its stated target of 2.6 billion cubic meters, according to people with direct knowledge of the matter.

China Petroleum & Chemical Corp., the nation’s second-biggest oil and gas producer, may pump around 3.5 billion cubic meters of the fuel, according to the people, who asked not to be identified because the information isn’t public. The explorer plans to complete an expansion project this month that will boost capacity to 5 billion cubic meters a year.

China’s efforts to copy the success of the U.S. in shale production has foundered as an economy growing at the slowest pace in 25 years curbs demand. The combined production of the two companies of 5.1 billion cubic meters in 2015 accounts for almost all of China’s commercial shale gas output. The country in 2012 announced an annual production target of 6.5 billion cubic meters for this year. MORE